Health, Human Services Commission announces more budget cuts (UPDATE)

The Health and Human Services Commission was quick to announce budget cuts in response to state leaders’ directive for more slashing in the face of a shortfall.

The agency will reduce the rates paid health-care providers who serve Medicaid and Children’s Health Insurance Program patients, said commission spokeswoman Stephanie Goodman.

The reductions, effective Feb. 1, will cut rates for acute care services by 1 percent and rates for nursing facility services by 2 percent. Home and community-based service will be reduced by 2 percent.

The rate reductions are in addition to the 1 percent reductions that took effect Sept. 1, 2011, as part of the state’s effort to save money.

Goodman said the additional rate reductions are expected to save an additional $42 million in state funds this fiscal year. The first 1 percent reduction will save $64.3 million for FY2011, Goodman said.

The agency earlier this year had said that human-services cuts of $205 million announced previously — including reimbursement-rate reductions — would cost the state an estimated $190 million in federal matching funds. I’ve asked for how much more the state might lose in federal money due to the additional cuts.

UPDATE: Goodman said the state will lose an additional $83.5 million in federal funds due to the additional rate cut.